Chinese private tutoring company TAL Education on Monday announced its unaudited financial results for the third quarter of fiscal year 2022 ended November 30, 2021.
The report shows that its net revenues decreased by 8.8% year-over-year to $1.02 billion, from $1.12 billion in the same period of the prior year. Net loss attributable to TAL was $99.4 million, compared to $43.6 million in the same period of the prior year.
In the nine months ended November 30, 2021, TAL’s net revenues increased by 22.9% year-on-year to $3.85 billion from $3.13 billion in the same period of the prior year. Loss from operations was $615.2 million, compared to $141.0 million in the same period of the prior year.
Since the implementation of the “double reduction” policy by Chinese authorities, the transformation of leading private tutoring institutions has attracted much attention. Since June 2021, TAL has successively expanded quality education, trusteeship, business for enterprises and adult education business such as postgraduate entrance examination, language training and studying abroad.
First Leap, a subsidiary of TAL, has launched five quality education products: drama, aesthetics, intelligence, eloquence and literacy. TAL has opened the teaching and research cloud system to teachers free of charge during the epidemic, providing services for 140,000 teachers in more than 40,000 training institutions in 31 provinces and cities across the country. In terms of international business, TAL’s overseas branches have been established in the United States, the United Kingdom and Singapore.
Apart from the firm’s business adjustments, TAL has undergone significant personnel transfers. Before the “double reduction” policy was introduced, there were nearly 100,000 employees at TAL, but by the end of last year, there were only about 10,000 employees left.
Gaotu TechEdu issued business updates last Thursday following the release of regulatory requirements by the Beijing local government. The company will cease offering academic tutoring services to students in senior high schools before the end of February. It expects this to have a substantial adverse impact on its revenue.
In December, 2021, New Oriental entered the e-commerce livestreaming field to explore new growth potential. However, in the past two months, a total of 335 goods were sold, and the sales volume was only 4.5 million yuan ($710,395).